HK Stock Market Move | In the early market, the stocks of domestic banks generally rose, and the interest rate cut had a neutral overall impact on the net interest margin of banks. If economic indicators improve, it will drive the recovery of the sector.

In the early trading session, domestic bank stocks generally rose, Jiangxi Bank (01916) rose 8.62% to HKD 0.63, China Merchants Bank (03968) rose 5.39% to HKD 36.15, China Construction Bank Corporation (00939) rose 2.7% to HKD 6.09, and Industrial and Commercial Bank of China (01398) rose 1.7% to HKD 4.78. On the news front, the Governor of the People's Bank of China, Pan Gongsheng, revealed that in the design of this rate adjustment plan, the technical team of the People's Bank of China conducted multiple rounds of careful quantitative analysis and evaluation. The policy changes will have a neutral impact on bank income, and the net interest margin of the banking industry will remain basically stable. It is worth noting that Li Yunze, Director of the China Banking and Insurance Regulatory Commission, said that there are plans to increase core Tier 1 capital for 6 large commercial banks. Dongguan Securities pointed out that in the recent period, a combination of policies related to real estate and monetary policy has been implemented. It is suggested to pay attention to the implementation of various stabilizing growth policies and grasp the key period of expectation and confidence reversal. If subsequent policies continue to be effective, it will fundamentally improve the operating environment of the banking industry, and positive changes in economic indicators may become an important catalyst for the recovery of the banking sector.